This is not Ilikai news. But a lot can be learned from other condominium associations, about possible problems and solutions. Here is how another association – Waipouli Beach Resort, on Kauai – showed leadership in addressing what some owners alleged were inappropriate, if not illegal, financial activities. Take a look at this article in the Star Bulletin. They got a forensic accountant to audit their records and contacted the Kauai prosecuting attorney and the state Regulated Industries Complaint Office. Their new, owners’-controlled Board did not hide their head in the sand or sweep problems under the rug. They showed leadership.
Interestingly, it involves some people and entities that we know. The developer, Chris Singleton, just recently turned his share of the property to the bank, – and the bank happens to be iStar (he initially borrowed from Fremont, then iStar ended up with that loan, i.e., similarly to what happened to the Anekona’s loan at the Ilikai). It is to be seen what iStar will do there.
They also used to have Sue Savio and her Insurance Associates company, as their insurance carrier. Again, the new, owners’-controlled Board showed leadership, they proactively opened it to competitive bidding, and got a new insurance provider, saving the Association over $300K a year in insurance premiums. (You may recall the fiasco several months ago with our insurance, click here to read, how frustrating, it’s a lot of money.)
The Waipouli saga also offers a lot of insight into problems that are likely to occur when the same entity – it was Outrigger in their case – wears several hats (the AOAO managing agent, hotel operator etc).